{"id":343052,"date":"2017-06-08T01:44:37","date_gmt":"2017-06-07T17:44:37","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1500267"},"modified":"2017-06-08T01:44:37","modified_gmt":"2017-06-07T17:44:37","slug":"what-the-hell-is-happening-to-cryptocurrency-valuations","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/what-the-hell-is-happening-to-cryptocurrency-valuations\/","title":{"rendered":"What the hell is happening to cryptocurrency valuations?"},"content":{"rendered":"

The total market cap for all cryptocurrencies just surpassed $100 billion<\/a>. The vast majority of these gains have come in just the last few months \u2014 on April 1st the total market cap was just over $25 billion \u2014 representing a 300 percent increase in value in just over 60 days.<\/p>\n

While some of these gains are from bitcoin itself (BTC is up ~160 percent in the same two-month time frame), other digital currencies like Ethereum are also responsible for the increase, which on its own has increased ~439 percent over the last two months.<\/p>\n

There\u2019s perhaps no better way to show this diversity in gains than by looking at a chart of bitcoin\u2019s \u201cdominance\u201d \u2014 i.e. what percent of the entire cryptocurrency market cap is represented by bitcoin. For years this had always hovered around 80 percent, but in the last few months has fallen to below 50 percent \u2014 with currencies like Ethereum and Ripple taking its place.<\/p>\n

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Source: coinmarketcap.com<\/p>\n<\/div>\n

Bubble talk?\u00a0<\/span><\/p>\n

It\u2019s hard to be an experienced investor, or even an at-home part-time trader, and not think of a massive bubble when you see that some asset has increased more than 400 percent in just a few months. It\u2019s just how history works \u2014 when an asset rises that fast it\u2019s a near certainty that it will come back down. Markets are irrational, after all.<\/p>\n

So don\u2019t be surprised if there\u2019s at least some type of correction. There already was, a few weeks ago \u2014 bitcoin pulled back from a high of $2,700 to around $2,000, but, as of today, has slowly climbed back up to a new all-time high of ~$2,850.<\/p>\n